Retailers and UK manufacturing

Why are we talking about this now?

Two big British fashion retailers are aiming to ramp up the quantity of goods they source from the UK.

Luxury group Mulberry hopes the Government will help with the financing of a second factory in Somerset while home shopping giant N Brown is to “significantly” increase goods sourced from UK textile manufacturers.

Are they alone in that objective?

No. Other fashion retailers such as Shop Direct are now sourcing some clothing in the UK, while Marks & Spencer has increased production of hosiery in Derbyshire. Footwear specialist Clarks has been assessing whether it can bring back some manufacturing to Britain and Arcadia boss Sir Philip Green spoke out at this year’s Retail Week Conference in support of the opening of more factories in the UK.

Why are retailers choosing to bring manufacturing back home?

‘Made in Britain’ can be a powerful selling message for retailers, says UK Fashion and Textiles Association chief executive John Miln.

Products made in Britain are seen as desirable by consumers, denoting quality and craftsmanship. Part of Mulberry’s appeal internationally is that it is seen as a quintessentially British brand that is likely to have driven its decision to increase domestic manufacture.

Young fashion retailer River Island has recently introduced ‘Made in Britain’ labelling into domestically sourced garments and notes there is “an appetite” for products manufactured in the UK.

In N Brown’s case, the initiative has been driven by a desire to respond quicker to style trends.

N Brown merchandising director Paul Short says: “We’re moving into the internet in a much bigger way. This will allow us to add more newness to our offer and react quicker to trends.”

Short says that lead times will be cut from between 12 to 16 weeks to six weeks by moving production from the Far East to the UK. 

Can British manufacturing be revived?

Miln thinks there is an opportunity to increase British manufacturing, but believes that it will never return to its former glory. “We don’t have the requisite skills or capacity for large-scale production,” he says.

Short points out that at this stage only highly mechanised products are being piloted because of the lack of skills within the UK. However, Miln says price is the biggest inhibitor of a large-scale move to UK manufacture. Despite wage increases in the Far East, the UK cannot compete in terms of price, he says.